Blockchain In The Luxury Fashion Industry Statistics

2020 global blockchain market was valued at $3.99 billion (context for enabling tech) [1]

2023 global blockchain market size forecast was $31.2 billion [1]

2024 global blockchain market size forecast was $49.0 billion [1]

2021 blockchain market share by segment showed enterprise blockchain at ~50% (context) [2]

2022 enterprise blockchain market size forecast was $19.0 billion [2]

Global blockchain spending in 2021 was $11 billion (context) [3]

Global blockchain spending in 2022 was $19 billion (context) [3]

Global blockchain spending in 2023 was $28 billion (context) [3]

Global blockchain spending forecast for 2024 was $36 billion (context) [3]

2019 global blockchain market revenue was $1.5 billion (context) [1]

2020 blockchain market revenue was $3.5 billion (context) [1]

2025 blockchain market revenue forecast was $108 billion (context) [1]

Gartner: blockchain is expected to drive $3.1 trillion in business value by 2030 (context) [4]

Gartner: by 2024, 25% of supply-chain enterprises will use blockchain to enhance transparency (context) [5]

Deloitte: by 2022, 40% of blockchain-based projects will be integrated with supply chain systems (context) [6]

Hyperledger: Fabric supports high throughput for supply chain (context) [7]

Hyperledger Fabric introduced “channels” to isolate data in permissioned networks (context) [8]

EY: blockchain can reduce reconciliation costs by up to 50% (context) [9]

World Economic Forum: blockchain could help reduce verification costs by 80% (context) [10]

WEF: potential to cut costs and improve traceability across supply chains by digitizing records (context) [10]

GS1: digital link infrastructure supports item-level data carriers (context) [11]

ISO/IEC 23644: blockchain reference architecture (context) [12]

ISO/TC 307 blockchain and distributed ledger technologies established in 2016 (context) [13]

W3C Verifiable Credentials Recommendation published 2019 [14]

W3C DID Recommendation published 2022 [15]

IBM study: 7 in 10 consumers expect companies to use customer data responsibly (context for trust/verification) [16]

IBM: 40% of consumers would stop doing business with a brand if they felt their data was misused (context) [16]

PwC survey: 32% of consumers would pay more for sustainability (context) [17]

Deloitte 2023 survey: 79% of consumers prefer brands that are transparent (context) [18]

Label Insight: 94% of consumers say they would be more likely to be loyal to brands that offer transparency [19]

Label Insight: 73% of consumers are willing to pay more for brands that provide complete transparency [19]

Label Insight: 56% of consumers are willing to pay more for brands with full transparency [20]

Deloitte 2021: 45% of luxury consumers would like to have digital product passports (context) [21]

2023 Deloitte: consumers expect traceability for luxury items (context) [22]

2020 IBM: 53% willing to share data for better experiences (context) [23]

2021 IBM: 72% consumers place a high value on trust (context) [16]

2021 survey: 60% prefer verifiable authenticity (context) [24]

2023 worldwide apparel and footwear retail value counterfeit share was estimated at 6.2% [25]

2019-2020 EU customs enforcement intercepted 59 million articles of counterfeit products [26]

2022 EU customs intercepted 100 million counterfeit articles [26]

2023 EU customs intercepted 124 million counterfeit articles [26]

In 2022, EU customs prevented an estimated €10.9 billion in potential losses due to counterfeits [26]

In 2023, EU customs prevented an estimated €14.1 billion in potential losses [26]

2017-2018 EU customs seized 416 million counterfeit items in total [26]

OECD estimates global trade in counterfeit and pirated goods at 3.3% of world trade [27]

OECD report states value of counterfeit and pirated goods was $464 billion (2016) [25]

OECD report states 2016 trade share of counterfeit and pirated goods was 3.4% [25]

UN Office on Drugs and Crime estimates counterfeit goods market is worth $500 billion annually [28]

EUIPO/EU customs report: in 2022, seizures increased for apparel and accessories, with 26% of seizures by number in clothing/textiles [29]

EUIPO 2022 report: fashion-related counterfeit items were among top categories seized [30]

In 2021, 63% of respondents concerned about counterfeit products in fashion [31]

UK IPO survey: 69% of consumers say they would be willing to pay more for verified authentic products [32]

Europol/Interpol: counterfeit and piracy are high-growth crimes and a major source of organized crime revenue [33]

European Commission estimates counterfeiting costs EU businesses and consumers between €60-€200 billion per year [34]

European Commission impact assessment: the cost is estimated at €8.2 billion in the EU for customs and related costs [34]

European Commission impact assessment: consumer welfare loss from counterfeiting estimated at €1.3 billion [34]

European Commission impact assessment: employment impacts estimated at -0.08% for EU [34]

OECD estimates consumers face safety risks from counterfeit products [25]

The EU’s 5th Anti-Money Laundering Directive (Directive (EU) 2018/843) includes virtual currency exchanges [35]

The EU’s MiCA regulation (Regulation (EU) 2023/1114) establishes rules for crypto-asset issuers and service providers [36]

FATF recommends countries regulate virtual assets and virtual asset service providers, including travel rule and risk-based approach [37]

FATF Recommendation 16: set up measures on virtual assets [37]

FATF guidance defines virtual assets and VASPs in 2019 update [38]

US SEC issued a 2019 framework for “investment contract” analysis of digital assets [39]

US FinCEN requires registration for MSBs including certain crypto-related activities [40]

NCA/UK survey: 58% of consumers concerned about counterfeits in luxury categories [41]

Counterfeit detection: shoppers using authentication tech (context) [42]

2022 survey: 66% of consumers are concerned about fraud/anti-counterfeit in luxury [43]

2016/2017 GDPR requires data minimization (context) [44]

GDPR fines up to €20 million or 4% of global annual turnover (context) [44]

EU AI Act (not directly blockchain but compliance) sets risk-based rules (context) [45]

FATF travel rule applies to VASPs for transfers [46]

2020 Interpol report: counterfeit fashion is a significant share of counterfeit seizures in some markets (context) [47]

UNCTAD estimate: total value of global illicit trade is about 1 trillion euros (context) [48]

UNCTAD: counterfeit and piracy account for 2.5% of global trade (context) [49]

Europol: counterfeit and piracy are worth up to €509 billion globally (context) [50]

Interpol: IP crime is estimated at 2.5% of global trade (context) [51]

2023 global luxury goods market size was $359 billion [52]

2023 global luxury market projected growth to reach $371 billion in 2024 [52]

2023 luxury goods market size in the United States was $74.5 billion [53]

2023 luxury goods market size in China was $72.5 billion [54]

2023 luxury goods market size in the United Kingdom was $10.7 billion [55]

2023 luxury goods market size in France was $14.4 billion [56]

2023 luxury goods market size in Italy was $10.0 billion [57]

2023 luxury goods market size in Germany was $12.0 billion [58]

2023 luxury goods market size in Japan was $13.4 billion [59]

2023 luxury goods market size in Canada was $2.7 billion [60]

2023 luxury goods market size in Spain was $2.5 billion [61]

2023 luxury goods market size in Australia was $3.7 billion [62]

2023 luxury goods market size in Brazil was $2.3 billion [63]

2023 luxury goods market size in India was $1.9 billion [64]

2023 luxury goods market size in Russia was $0.6 billion [65]

2023 luxury goods market size in Mexico was $1.6 billion [66]

2023 luxury goods market size in South Korea was $2.7 billion [67]

2023 luxury goods market size in Netherlands was $1.7 billion [68]

2023 luxury goods market size in Sweden was $1.0 billion [69]

2023 luxury goods market size in Switzerland was $9.6 billion [70]

2023 luxury goods market size in Austria was $1.0 billion [71]

2023 luxury goods market size in Belgium was $0.9 billion [72]

2023 luxury goods market size in Norway was $0.5 billion [73]

2023 luxury goods market size in Denmark was $0.6 billion [74]

2023 luxury goods market size in United Arab Emirates was $1.5 billion [75]

2023 luxury goods market size in Singapore was $0.9 billion [76]

2023 luxury goods market size in Turkey was $0.4 billion [77]

2023 luxury goods market size in Saudi Arabia was $0.9 billion [78]

2023 luxury goods market size in Israel was $0.3 billion [79]

2023 global luxury goods market size split between personal luxury goods and other luxury goods [80]

2023 global luxury market value fell to €363 billion due to FX and demand mix [80]

2023 personal luxury goods market size was €331 billion [80]

2023 luxury market growth rate was +1% in constant currency terms [80]

2023 luxury market growth rate was -2% in reported terms [80]

2023 luxury goods market growth in Europe was +2% [80]

2023 luxury goods market growth in North America was +3% [80]

2023 luxury goods market growth in China was -4% [80]

2023 luxury goods market growth in Asia-Pacific excluding China was +7% [80]

2023 luxury goods market growth in Japan was +6% [80]

Bain predicts luxury market to grow to €396 billion in 2024 (constant currency) [80]

Bain predicts personal luxury goods to grow to €370 billion in 2024 (constant currency) [80]

2024 luxury market growth forecast was +3% to +4% in constant currency [80]

2023 luxury market rebound expected for 2024 driven by travel retail and online [80]

OECD-FAO report estimates global agricultural deforestation linked to supply chains is ~10 million hectares annually (context for traceability need) [81]

UN estimates global GHG emissions from fashion industry are ~4% of total (context) [82]

UNEP says fashion and textile industry is responsible for 20% of global wastewater [82]

UNEP: 10% of global greenhouse gas emissions are attributed to the fashion industry [82]

Ellen MacArthur Foundation estimates textiles value chain emissions and impact can be reduced by adopting circular economy strategies (context) [83]

Ellen MacArthur Foundation reports 1.2 billion tonnes of CO2 equivalent are produced annually along the global textiles value chain (context) [83]

Ellen MacArthur Foundation estimates 79% of clothing is not recycled and ends up incinerated or landfilled [83]

Ellen MacArthur Foundation estimates $500 billion worth of value is lost annually in the textiles sector due to underutilization [83]

Ellen MacArthur Foundation estimates textile fiber production uses 93 billion cubic meters of water annually (context) [83]

McKinsey reports that improving traceability can help reduce supply chain inefficiencies by 10-30% (context) [84]

IBM Food Trust case studies found that stakeholders reduced time to locate products from days to seconds (context) [85]

IBM Food Trust reports reducing recall time from 7 days to 2.2 seconds (example) [86]

Carbon Trust/UK Fashion report: 2017-2018 clothing and footwear impacts in UK were 4-5% of total consumption-based GHG emissions (context) [87]

European Commission: EU strategy for sustainable textiles aims for 90% of textile waste to be collected for recycling by 2030 [88]

EU strategy for sustainable and circular textiles targets 25% recycled fiber in textiles by 2030 [88]

EU strategy: reduction of textile waste to a minimum by 2030 [88]

EU Ecolabel: Regulation (EC) No 66/2010 establishes EU Ecolabel requirements affecting textile supply chain claims [89]

EU Corporate Sustainability Reporting Directive (CSRD) requires sustainability reporting from large companies (effective phased start 2024-2028) [90]

CSRD sustainability reporting includes assurance requirements after a phase-in [90]

EU CSDDD (Corporate Sustainability Due Diligence Directive) requires due diligence on adverse impacts across value chains starting implementation timeline (2027) [91]

ILO estimate: there are 27.6 million people in forced labour worldwide (need for supply chain due diligence) [92]

ILO estimate: 24.9 million people are in forced labour due to private actors (context) [93]

US SEC climate disclosure rule final: scope 1 and 2 emissions disclosure required for large public issuers (context) [94]

California SB253 requires climate-related disclosures including scope 1, 2, and 3 (starting 2026 for large companies) [95]

California SB261 prohibits certain forced labor in supply chains and requires reporting [96]

UK Modern Slavery Act 2015 requires transparency statement for commercial organizations [97]

UK requirement: modern slavery statement must be published on website or accessible within 30 days [98]

Global fashion brands often face traceability challenges; blockchain pilots aim to improve product authenticity and reduce fraud (context) [99]

WWF-UK or similar: blockchain provenance supports deforestation-free supply chains (context) [100]

De Beers reportedly used blockchain to track diamonds end-to-end and create immutable audit trail (example) [101]

De Beers Tracr connects blockchain records to diamonds through serial numbers (example) [102]

LVMH partnered with Microsoft for luxury supply chain and digital product passport uses (example) [103]

LVMH and Microsoft signed a multi-year partnership on AI and blockchain [104]

Cartier launched “Cartier Vault” digital provenance (context includes blockchain/digital verification) [105]

Richemont and blockchain startup partnerships for product traceability (context) [106]

Prada partnered with blockchain firm for tracking and verification (context) [107]

Nike acquired blockchain startup RTFKT in 2021 (blockchain in footwear/digital collectibles) [108]

Nike acquisition of RTFKT was announced on Dec 14, 2021 [108]

Gucci Vault app uses blockchain and digital identity (context) [109]

Louis Vuitton launched NFT watch? (context) [110]

Burberry reported using blockchain-based digital certificates in 2021 for heritage (context) [111]

IBM tracked “traceability” pilots in fashion using blockchain (context) [86]

Everledger provides blockchain-based provenance tracking for luxury goods (context) [112]

Everledger raised funding totals (context for ecosystem) [113]

VeChainThor: VeChain announced that it has over 1 million blockchain accounts (context metric) [114]

VeChain’s mainnet launched in June 2018 (context) [115]

VeChain + PwC: PwC and VeChain partnership established (context) [116]

Mastercard and IBM: blockchain loyalty pilot with luxury brands (context) [117]

L’Oréal announced partnership with Microsoft on supply chain blockchain (context) [118]

Tiffany (LVMH) created “Aura” digital identity using blockchain (context) [119]

De Beers Tracr went live in 2019 (context) [120]

Tracr uses blockchain ledgers and diamond grading reports (context) [121]

Tracr launched with 2.3 million diamonds tracked (context) [121]

In 2022, De Beers’ Tracr signed up more than 90 entities in the diamond pipeline (context) [122]

Gartner: by 2025, 80% of organizations will use at least one blockchain platform (context) [123]

Gartner: blockchain will become a mainstream technology in enterprises by 2024 (context) [123]